Personal Finance

ISPO Stock Skyrockets: What caused the 500% jump?

Inspirato Incorporate (NASDAQ: ISPO) – this innovative luxury hospitality brand witnessed an unprecedented rise in its stocks on Thursday, 17th February 2022. The ISPO stock rise has taken the position as one of the highest single-day increases of the year 2022. However, the question clouding everyone’s mind lies in what caused this monumental rise? 

What does Inspirato do?

Launched in 2010, Inspirato has maintained a fairly private and silent history. A corporation in the niche luxury hospitality industry, the company offers affluent clients the chance to construct their dream vacation. The company provides vacation rentals to exclusive once-in-a-lifetime experiences to 240 destinations across the world. 

Inspirato operates using a subscription base wherein subscribers can book vacations, upscale their hotels, cruises, and even vacation homes. This comes at a starting price of $2,500 per package.

What caused the rise in ISPO stock?

On Thursday, ISPO saw a major increase in its stock with prices skyrocketing by a whopping 650%. This comes shortly after the company saw its market debit on Valentine’s Day with over 500% in stocks. The unprecedented increase in stocks comes three days after the luxury hospitality brand went public through its merger with special purpose acquisition (SPAC) Thayer Ventures. 

In this merger, Inspirato received gross proceeds of approximately $260 million during the transaction. This increased the valuation of the travel service company to $1.1 billion, in addition to a market cap of $1.65 billion. 

What’s next for Inspirato?

Unfortunately, the travel subscription company has seen a decrease in stocks from its 650% rise. This occurred when shares fell by 50% on the 18th of February 2022. While analysts speculate that Inspirato’s increase in stock could be due to a short squeeze caused by shareholders of Thayer Ventures redeeming their shares before the SPAC deal closed. 

However, it’s too early to say and just maybe Inspirato’s journey to stock market domination is just beginning!

A.S.M.A

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